Pet product marketers and retailers must re-evaluate their key strategic options to respond to the current marketplace: competing on price, incorporating premium and natural products into the product mix, improving merchandising, staging events and promotions, playing up pet treats, and becoming destination information sources (including online).

That's because pet owners are shopping around. According to Packaged Facts' September 2011 Pet Owner Survey, nearly half (47%) of pet product buyers agree that they shop for pet products at a variety of stores. Experian Simmons data show that the percentage of dog or cat owners who are channel-loyal fell to 41% in 2011, down from 53% in 2006.

Over the long term, three trends have greatly intensified competition: the expansion of the two big-box pet specialty chains; the growth of mass merchandisers and supercenters; and the rise of the Internet. Shorter term, since 2008, the Great Recession and its New Normal aftermath of economic sluggishness have pressured pet product retailers of all kinds. Budget-conscious consumers demand more value in the products they buy, chart out grocery shopping trips beforehand, and are willing to switch channels and brands to make ends meet or satisfy shifting priorities. There is still a strong upscale element to the pet market, of course. But in the wake of the "premiumization" wave of the early 2000s, many pet owners have already traded up-and, with the recession that followed, some have scaled back.

The pet product market's above-average prospects nonetheless continue to attract new players, expanding the range of retailers vying for a slice of the pie. The new players include private label, further complicating strategies and options for traditional marketers. Packaged Facts survey data show high levels of affection for store brands among pet product buyers, nearly half of whom agree that they are buying more store-brand food and beverage products these days, and that "store-brand pet products are often as good as national brand name products" (45%).

Pet Product Retail Channel and Consumer Shopping Trends guides marketers and retailers in navigating these waters by examining pet product retail channel trends and consumer shopping patterns across all of the major pet product shopping venues in the United States, including supermarkets, discount stores, wholesale clubs, drugstores, convenience stores, pet superstores, other pet chains and independents, Internet, veterinarians, natural supermarkets, dollar stores, agricultural/feed-seed/farm stores, home improvement/garden centers, home stores, and closeout stores.

This report features exclusive pet shopper profiling data from Packaged Facts' quarterly pet owner surveys, as well as trended national consumer survey results from Experian Simmons. Coverage includes breakouts of pet product sales by retail channel; trended rates of channel usage and loyalty; cross-channel trends including impact of recession and ongoing economic sluggishness; role of channel exclusivity or expansion among major marketers and brands; private-label impact; and role of premium products and "pets as family" sentiment in the economic New Normal. Focus discussions home in on key channels and chains including:

·         Core mass channels including supermarkets, discount stores, wholesale clubs, drugstores, and convenience stores

·         Natural supermarkets including Whole Foods and Trader Joe's

·         Pet specialty independents and chains including PetSmart and Petco

·         Veterinarians

·         Internet

·         Dollar Stores

·         Other alternative channels

For each major channel, the report provides trended household purchasing and channel-loyalty rates, demographic shopper profile, psychographic shopper profile, and breakouts by pet product category and brand purchased. Extensive on-site research is documented in text and illustrated with photographs of in-store departments, brand selection, and promotions

Chapter 1: Executive Summary

Scope of Report

Report Methodology

More Dollars, More Channels

Figure 1-1: Share of U.S. Retail Sales of Pet Products Market by Channel Classification, 2011 (percent, 4 classifications)

The New Normal

Pet Owners Share Cautious Outlook

Figure 1-2: Level of Agreement with Statement: “I look out for lower prices, special offers, and sales on pet products,” 2011 (percent)

Shopping Around

Coupon Use on the Rise

Figure 1-3: Percent Who Use Pet Food Coupons: Dog Owners vs. Cat Owners, 2008- 2011 (percent)

Private Label a Mixed Bag

Ongoing Interest in Premium, Natural, Health Products

High Income Demographics and Pets as Family

Expanding Distribution of Formerly Vet-Only Flea/Tick Spot-Ons

Illustration 1-1: PetArmor Plus On-Shelf Display in Walmart Store

Pet Product Purchasing Rates by Channel

Table 1-1: Household Purchasing Overview for Pet Products by Retail Classification: U.S. Households Overall vs. Dog or Cat Owners, Summer 2011 (number and percent)

Walmart Tops Recent Shopper List

Table 1-2: Channel Choices for Pet Product Shopping in Last 3 Months: Pet Food, Pet Medications, Other Pet Supplies, 2011 (percent of pet product buyers)

25 Million Pet Product Shoppers Are Channel-Loyal

Table 1-3: Channel-Loyal Purchasing of Pet Products by Retail Classification, Summer 2011 (number and percentages)

But Channel Loyalty Is Down

Shopper Psychographics: Other Pet Store Shoppers the Most Adventuresome

Pet Product Shopper Category and Brand Preferences

Chapter 2: Introduction

Scope of Report

More Dollars, More Channels

Table 2-1: U.S. Retail Sales of Pet Products by Category: Food vs. Nonfood, 2010-2011 (in billions of dollars and percent change over previous year)

Table 2-2: U.S. Pet Products Market: Dollar Sales and Percent Share by Channel, 2011 (in billions of dollars, percent, 15 channels)

Figure 2-1: Share of U.S. Retail Sales of Pet Products Market by Channel Classification, 2011 (percent, 4 classifications)

The New Normal

Pet Owners Share Cautious Outlook

Figure 2-2: Overview of Change in Financial Situation of Dog or Cat Owners Compared with 12 Months Ago, Summer 2011 (percent)

Figure 2-3: Level of Agreement with Statement: “I am spending less on pet products these days because of the economy,” February 2011 vs. September 2011 (percent)

Figure 2-4: Level of Agreement with Statement: “Many pet products are becoming too expensive,” 2011 (percent)

Figure 2-5: Level of Agreement with Statement: “I look out for lower prices, special offers, and sales on pet products,” 2011 (percent)

Shopping Around

Figure 2-6: Level of Agreement with Statement: “I shop for pet products at a variety of stores,” 2011 (percent)

Table 2-3: Retail Channel Purchasing Patterns for Pet Products: By Change in Financial Situation of Dog or Cat Owners Compared with 12 Months Ago, Summer 2011 (percent)

Table 2-4: Retail Channel Purchasing Indexes for Pet Products: By Change in Financial Situation of Dog or Cat Owners Compared with 12 Months Ago, Summer 2011 (index)

Coupon Use on the Rise

Figure 2-7: Percent Who Use Pet Food Coupons: Dog Owners vs. Cat Owners, 2008- 2011 (percent)

“Coupons Draw Me to Stores I Don’t Shop”

Table 2-5: Selected Shopping- and Buying-Related Indexes by Retail Channel Shopped for Pet Products, 2011 (overall percent and index by retail channel)30

Table 2-6: Usage Rates for Pet Food Coupons: By Change in Financial Situation of Dog or Cat Owners Compared with 12 Months Ago, Summer 2011 (percent)

Table 2-7: Usage Rates for Pet Food Coupons: By Household Income Bracket of Dog or Cat Owners, Summer 2011 (percent)

Table 2-8: Usage of Pet Food Coupons by Retail Classification: Dog or Cat Owners, Summer 2011 (percent and index)

Table 2-9: Demographics for Dog or Cat Owners Who Use Pet Food Coupons, Summer 2011 (number, percent, and index)

Table 2-10: Pet Product Purchasing by Price Level: Food vs. Nonfood, 2011 (percent)

Private Label a Mixed Bag

Figure 2-8: Level of Agreement with Statement: “For my own use or household use, I am buying more store-brand food and beverage products these days,” 2011 (percent)

Figure 2-9: Level of Agreement with Statement: “Store-brand pet products are often as good as national brand-name products,” 2011 (percent)

Table 2-11: Purchasing Patterns for Selected Types of Store-Brand Dog and Cat Food: By Retail Channel Shopped, Spring 2007 vs. Summer 2011 (percent)

Table 2-12: SymphonyIRI-Tracked Sales of Pet Products by Food and Non-Food Category and Segment: Total vs. Private Label, 2010 vs. 2011 (in millions of dollars)

Table 2-13: Private-Label Share of IRI-Tracked Sales of Pet Products: By Food and Non-Food Category and Segment, 2010 vs. 2011 (percent)

Figure 2-10: Level of Agreement with Statement: “I am buying more store brand pet products these days,” February 2011 vs. September 2011 (percent)

Table 2-14: Purchasing Patterns for Selected Types of Store-Brand Dog and Cat Food: By Retail Channel Shopped, 2007 vs. 2011 (percent)

Ongoing Interest in Premium, Natural, Health Products

Figure 2-11: Level of Agreement with Statement: “I prefer to shop at pet product retailers that offer the best products available, even if they are more expensive,” 2011 (percent)

Figure 2-12: Level of Agreement with Statement: “I prefer to shop at pet product retailers that offer natural/organic and other specialty brand products,” 2011 (percent)

Figure 2-13: Level of Agreement with Statement: “If natural/organic pet products were more available where I shop, I would buy them more often,” 2011 (percent)

Figure 2-14: Level of Agreement with Statement: “If natural / organic pet products were more affordable where I shop, I would more buy them more often,” 2011 (percent)

High Income Demographics and Pets as Family

Figure 2-15: Level of Agreement with Statement: “I consider my pets to be part of the family,” 2011 (percent)

Figure 2-16: Level of Agreement with Statement: “My pet has a positive impact on my health”: Physical vs. Mental, 2011 (percent)

Figure 2-17: Level of Agreement with Statement: “I like to indulge my pets with special food/chew treats,” 2011 (percent)

Expanding Distribution of Formerly Vet-Only Flea/Tick Spot-Ons

Illustration 2-1: PetArmor Plus On-Shelf Display in Walmart Store

Pet Product Shopper Category and Brand Preferences

Table 2-15: Purchasing Indexes for Selected Pet Products and Brands by Leading Retail Channel Shopped by Dog or Cat Owners, 2011 (overall percent and index by channel)

Table 2-16: Purchasing Overview for Selected Pet Accessories by Leading Retail Channel Shopped by Dog or Cat Owners, 2011 (percent)

Table 2-17: Purchasing Overview for Selected Pet Accessories by Leading Retail Channel Shopped by Dog or Cat Owners, 2011 (index)

Table 2-18: Purchasing Indexes for Selected Dog Products and Brands by Leading Retail Channel Shopped by Dog Owners, 2011 (overall percent and index by channel)

Table 2-19: Purchasing Indexes for Selected Cat Products and Brands by Leading Retail Channel Shopped by Cat Owners, 2011 (overall percent and index by channel)

Table 2-20: Purchasing Rates for Organic Pet Food by Channel Shopped for Pet Products, 2010 vs. 2011 (percent and index)

Table 2-21: Demographics for Dog or Cat Owners Who Buy Organic Pet Food, Summer 2011 (number, percent, and index)

Chapter 3: Channel Usage

Data Sources and Methodology

Pet Product Purchasing Rates by Channel

Table 3-1: Household Purchasing Overview for Pet Products by Retail Classification: U.S. Households Overall vs. Dog or Cat Owners, Summer 2011 (number and percent)

Table 3-2a: Purchasing Rates for Pet Products by Selected Retail Channels and Pet Superstore Chains: Spring 2007-Spring 2011 (percent of dog or cat owners)

Table 3-2b: Purchasing Base for Pet Products by Selected Retail Channels or Pet Superstore Chains: Spring 2007-Spring 2011 (U.S. dog or cat owners in thousands)

Walmart Tops Recent Shopper List

Table 3-3: Channel Choices for Pet Product Shopping in Last 3 Months: Pet Food, Pet Medications, Other Pet Supplies, 2011 (percent of pet product buyers)

Table 3-4: Percentage of Pet Owners Who Purchased Any Pet Product in Last 30 Days and Amount Spent, by Channel, 2011

Table 3-5: Amount Spent on Pet Products in Last 30 Days, September 2011 (percent)

Income Relationship to Channel Selection

Table 3-6: Median Household Income and Average Household Income by Retail Purchasing Classification for Pet Products: Dog Owners vs. Cat Owners, Summer 2011 (in thousands of dollars)

Table 3-7: Median Household Income and Average Household Income by Retail Purchasing Patterns for Pet Products, Summer 2011 (in thousands of dollars)

Decline in Median Household Income

Table 3-8: Median Household Income by Selected Retail Channels for Pet Product Purchasing: Dog or Cat Owners, Spring 2007-Spring 2011 (in thousands of dollars)

Channel Choice by Income Level

Table 3-9: Retail Channel Purchasing Patterns for Pet Products: By Household Income Bracket of Dog or Cat Owners, Summer 2011 (percent)

Table 3-10: Retail Channel Purchasing Indexes for Pet Products: By Household Income Bracket of Dog or Cat Owners, Summer 2011

Age Relationship to Channel Selection

Table 3-11: Median Age by Retail Purchasing Classification for Pet Products: Dog Owners vs. Cat Owners, Summer 2011

Shopper Psychographics: Other Pet Store Shoppers the Most Adventuresome

Internet Enthusiasm Especially Strong Among Pet Specialty Shoppers

Table 3-12: Selected Shopping- and Buying-Related Psychographics: Non-Pet Owners vs. Pet Owners Overall, Dog Owners, or Cat Owners, Summer 2011 (overall percent and index by pet ownership)

Table 3-13: Selected Shopping- and Buying-Related Psychographics by Retail Channel Shopped for Pet Products, Summer 2011 (overall percent and index by retail channel)

Table 3-14: Selected Internet-Related Psychographics: Non-Pet Owners vs. Dog Owners or Cat Owners, Summer 2011 (overall percent and index by pet ownership)

Table 3-15: Selected Internet-Related Indexes by Retail Channel Shopped for Pet Products, Summer 2011 (overall percent and index by retail channel)

Chapter 4: Channel Loyalty

25 Million Pet Product Shoppers Are Channel-Loyal

Table 4-1: Channel-Loyal Purchasing of Pet Products by Retail Classification, Summer 2011 (number and percentages)

Table 4-2: Share of Total Channel-Loyal Purchasers of Pet Products by Leading Retail Channels or Pet Superstore Chains, Spring 2007-Spring 2011 (percent)

But Channel Loyalty Is Down

Table 4-3: Overview of Channel Loyalty in Pet Product Purchasing: Total vs. Key Channel (Pet Store, Supermarket, or Discount Store), Spring 2006-Spring 2011 (percent and number)

Figure 4-1: Key Channel (Pet Store, Supermarket, or Discount Store) Share of Total Channel-Loyal Pet Product Purchasers, Spring 2006-Spring 2011 (percent)

Discount Stores and Other Pet Stores Decline Most in Channel Loyalty

Table 4-4a: Share of Customer Base Who Are Channel-Loyal by Leading Retail Channels or Pet Superstore Chains, Spring 2007-Spring 2011 (percent)

Table 4-4b: Channel-Loyal Customer Base for Pet Products by Leading Retail Channel or Pet Superstore Chain, Spring 2007-Spring 2011 (number in thousands)

Pet Owners Doing More Shopping Around

Figure 4-2: Percent of Pet Product Customer Base Who Also Shop in Other Channels: By Major Retail Channel, Spring 2007 vs. Summer 2011 (percent)89

Reasons for Shopping Around Vary by Channel

Table 4-5: Selected Shopping- and Buying-Related Indexes by Retail Channel Shopped for Pet Products, Summer 2011 (overall percent and index by retail channel)

Routes to Channel Loyalty

Illustration 4-1: TV Spot for Walmart Pet Brands (2010)

Illustration 4-2: Petco’s Cat Litter Refill Station

Table 4-6: Psychographics Related to Environmental Consciousness by Retail Channel Shopped for Pet Products, Summer 2011 (overall percent and index by retail channel)

Chapter 5: Mass-Market Focus

Core Mass Channels Attract Two-Thirds of Dog or Cat Owners as Pet Product Shoppers

Table 5-1: Purchasing Rates for Pet Products in Supermarkets and Discount Stores: Spring 2007-Spring 2011 (percent of dog or cat owners)

Supermarkets

Figure 5-1: Channel-Loyal Purchasing of Pet Products by Selected Retail Classification, Summer 2011 (percent)

Figure 5-2: Product Types Purchased in Supermarkets in Last 3 Months: Pet Food, Pet Medications, Other Supplies, 2011 (percent)

Figure 5-3: Amount Spent on Pet Products in Supermarkets in Last 30 Days, 2011 (percent)

Caught in the Middle

Discount Stores

Figure 5-4: Share of Total Channel-Loyal Purchasers: Discount Stores vs. Pet Superstore, Spring 2007 vs. Spring 2011 (percent)

Figure 5-5: Product Types Purchased in Discount Stores in Last 3 Months: Walmart vs. Other Mass Merchandisers/Supercenters, 2011 (percent)

Figure 5-6: Amount Spent on Pet Products in Discount Stores in Last 30 Days: Walmart vs. Other Mass Merchandisers/Supercenters, 2011 (percent)

Walmart Making Big Pet Market Moves

Illustration 5-1: Nestlé Purina’s Purina Pet Park Area of Walmart Website

Target Also Building Its Pet Department

Illustration 5-2: Target’s Color-Coded Boots & Barkley Collar & Leash Display

Illustration 5-3: Target Display Featuring Iams Cat Food

Illustration 5-4: Target Christmas Display of Store-Brand Cat Toy Stockings

Wholesale Clubs

Figure 5-7: Product Types Purchased in Wholesale Clubs in Last 3 Months: Pet Food, Pet Medications, Other Supplies, 2011 (percent)

Figure 5-8: Amount Spent on Pet Products in Wholesale Clubs in Last 30 Days, 2011 (percent)

Illustration 5-5: Pet Aisle in Sam’s Club

Illustration 5-6: Sam’s Club Pallet Display of Milk-Bone Cartons

Illustration 5-7: Sam’s Club Online Pet Care Department Home Page

Illustration 5-8: Sam’s Club Pop-Up Aisle Display of Frontline Plus

Illustration 5-9: Sam’s Club’s New Simply Right Complete Nutrition Dog Food

Drugstores/Convenience Stores

Figure 5-9: Product Types Purchased in Drugstores and Convenience Stores in Last 3 Months: Pet Food, Pet Medications, Other Supplies, 2011 (percent)

Figure 5-10: Amount Spent on Pet Products in Drugstores and Convenience Stores in Last 30 Days, 2011 (percent)

Retail Sales and Leading Brands

A Trip to Walgreens

Illustration 5-10: The Pet Department in Walgreens

Illustration 5-11: Pet Department Endcap in Walgreens—“Pet Meds Covered”

Mass-Market Shopper Demographics

Table 5-2: Demographics for Pet Product Purchasers by Retail Channel: Supermarkets, Summer 2011 (number, percent, and index)

Table 5-3: Demographics for Channel-Loyal Pet Product Shoppers: Supermarkets, Summer 2011 (number, percent, and index)

Table 5-4: Demographics for Pet Product Purchasers by Retail Channel: Discount Stores, Summer 2011 (number, percent, and index)

Table 5-5: Demographics for Channel-Loyal Pet Product Shoppers: Discount Stores, Summer 2011 (number, percent, and index)

Table 5-6: Demographics for Pet Product Purchasers by Retail Channel: Wholesale Clubs, Summer 2011 (number, percent, and index)

Table 5-7: Demographics for Pet Product Purchasers by Retail Channel: Drugstores/Convenience Stores, Summer 2011 (number, percent, and index)

Chapter 6: Pet Specialty Focus

A Growing Shopper Base

Table 6-1: Purchasing Rates for Pet Products in the Pet Specialty Channel: Overall, Pet Superstore, PetSmart, Petco, Other, Spring 2007 vs. Spring 2011 (percent of dog or cat owners)

Table 6-2: Level of Pet Owner Agreement with Statement: “I usually shop for pet products in pet superstores or pet stores because of the customer service they provide,” February 2011 (percent)

Purchasing Rates by Product Type and Amount Spent

Figure 6-1: Product Types Purchased in Pet Specialty Channel in Last 3 Months: Pet Superstores, Other Pet Store Chains, Independent Pet Stores, 2011 (percent)

Figure 6-2: Amount Spent on Pet Products in Pet Specialty Channel in Last 30 Days: Pet Superstores, Other Pet Store Chains, Independent Pet Stores, 2011 (percent)

Brand Preferences

Pet Specialty Channel Shopper Demographics

PetSmart and Petco Continue to Advance in Pet Products and Services

Table 6-3: PetSmart and Petco Sales and Number of Stores: 2001-2011 (cumulative, in units and millions of dollars)

Focus on PetSmart

Table 6-4: PetSmart Sales and Number of Stores: 2001-2011 (in millions of dollars)

Price Promotions and Exclusive Brands

Illustration 6-1: PetSmart’s January 2012 “Stock Up and Save” Promotion (Website Home Page)

Martha Stewart Pet Supplies

GNC Pet Supplements

Illustration 6-2: PetSmart’s GNC Pet Supplement Web Page

Toys “R” PetSmart

Advantage and K-9 Advantix Flea and Tick Topicals

Superpremium Foods

Proprietary Brands

Illustration 6-3: PetSmart’s New Simply Nourish Pet Food (Web Page)

Focus on Petco

Table 6-5: Petco Annual Sales and Number of Stores: 2001-2011 (in millions of dollars)

Healthy Pets

Illustration 6-4: Petco Pet Food Label Evaluation Tips

Illustration 6-5: Petco’s Online Repeat Delivery Service

Unleashed by Petco

Focus on Value

Illustration 6-6: Petco Holiday 2010-2011 In-Store Sales Signage

Illustration 6-7: Petco Website Pop-Up Offering Storewide Savings (January 2012)

Other Top-Ranked Pet Specialty Chains

Independent Pet Store Trends: An Uphill Battle

Table 6-6: Top Challenges Pet Specialty Retailers Face in Next Two Years: 2008-2009, 2009-2010, 2010-2011, 2011-2012 (percent)

Independent Pet Store Characteristics

Table 6-7: Where Pet Stores Make Their Money: 2007-2010 (percent)

Pet Care Services: A Key Differentiator

Table 6-8: Percentage of Pet Specialty Retailers Offering Pet Care Services: By Type of Service, 2009-2010

Figure 6-3: Percentage of Pet Specialty Retailers Planning to Add Pet Care Services in Next Year: By Type of Service, 2003-2010

The Natural Thrust

Internet Marketing Catching On

Room in the Middle: Unleashed, Moochie Chart Expansion

Illustration 6-8: Exterior of Moochie & Company Mall-Based Pet Specialty Shop, Columbus, OH

Table 6-9: Demographics for Pet Product Purchasers by Retail Channel: Pet Superstores, Summer 2011 (number, percent, and index)

Table 6-10: Demographics for Channel-Loyal Pet Product Purchasers: Pet Superstores, Summer 2011 (number, percent, and index)

Table 6-11: Demographics for Pet Product Purchasers by Retail Channel: PetSmart, Summer 2011 (number, percent, and index)

Table 6-12: Demographics for Channel-Loyal Pet Product Purchasers: PetSmart, Summer 2011 (number, percent, and index)

Table 6-13: Demographics for Pet Product Purchasers by Retail Channel: Petco, Summer 2011 (number, percent, and index)

Table 6-14: Demographics for Channel-Loyal Pet Product Purchasers: Petco, Summer 2011 (number, percent, and index)

Table 6-15: Demographics for Pet Product Purchasers by Retail Channel: Pet Stores Other Than PetSmart or Petco, Summer 2011 (number, percent, and index)

Table 6-16: Demographics for Channel-Loyal Pet Product Purchasers: Pet Stores Other Than PetSmart or Petco, Summer 2011 (number, percent, and index)

Chapter 7: Internet Focus

Internet Sales of Pet Products Going Strong

Figure 7-1: Projected U.S. Online Sales of Pet Products, 2011-2015 (in billions of dollars)

Figure 7-2: Level of Agreement with Statement: “I often use the Internet to find pet care information/pet product information,” 2011 (percent)

Online Purchasing Rates

Figure 7-3: Online Purchasing Rates for Pet Products: Percent and Number of Dog or Cat Owners, Spring 2006-Spring 2011 (in millions)

Figure 7-4: Level of Agreement with Statement: “I often use the Internet to buy pet products,” 2011 (percent)

Figure 7-5: Level of Agreement with Statement: “I am buying more pet products online than I used to,” 2011 (percent)

When, What, Where

Figure 7-6: Time Frame for Most Recent Online Purchase of Pet Products, 2011 (percent of pet owners)

Figure 7-7: Product Types Purchased Online in Last 3 Months: Pet Food, Pet Medications, Other Supplies, 2011 (percent)

Figure 7-8: Amount Spent on Pet Products Purchased Online in Last 30 Days, 2011 (percent)

Table 7-1: Online Purchasing as a Percent of Total Purchasing: Pet Food vs. Nonfood Pet Supplies, 2011 (percent of dog/cat owners)

Table 7-2: Top Websites for Purchasing Pet Products Online, 2011 (percent of dog/cat owners—9 websites)

Online Shopper Demographics

Table 7-3: Demographics for Pet Product Purchasers by Retail Channel: Online, Summer 2011 (number, percent, and index)

Pet Medications Competition Heating Up Online

Illustration 7-1: PetArmor Banner Ad on Walmart.com

Illustration 7-2: Walmart.com Screen Shot: Humulin Pet Insulin Featured in Online Pharmacy

PetMed Express Feels the Heat

Table 7-4: PetMed Express Sales, 2007-2011 (in millions of dollars)

Table 7-5: Share of PetMed Express Sales by Category: 2007, 2009, 2011 (percent)

Illustration 7-3: Amazon.com Screen Shot: Dog Health Supplies

VIPPS Extension into Pet Space Meds May Give Internet a Boost

Looking Ahead

Chapter 8: Veterinary Channel Focus

Opportunities and Challenges

Table 8-1: Percentage of Dog and Cat Owners Who Have Visited Vet in Past Year: Routine Checkup vs. Sick/Emergency Care, 2011

Veterinary Channel Purchasing Rates

Table 8-2: Veterinary Channel Pet Product Purchasing Pattern by Household Income Bracket, Summer 2011 (percent and index)

Purchasing Rates by Product Type and Amount Spent

Figure 8-1: Product Types Purchased in Veterinary Channel in Last 3 Months: Pet Food, Pet Medications, Other Supplies, 2011 (percent)

Figure 8-2: Amount Spent on Pet Products in Veterinary Channel in Last 30 Days, 2011 (percent)

Veterinary Channel Shopper Demographics

Table 8-3: Demographics for Pet Product Purchasers by Retail Channel: Veterinarians, Summer 2011 (number, percent, and index)

Chapter 9: Natural Supermarket Focus

Sales Trends by Category

Table 9-1: Retail Dollar Sales of Pet Products in the Natural Supermarket Channel by Category and Segment, 2010 vs. 2011 (in millions of dollars)

Table 9-2: Share of Retail Dollar Sales of Pet Products in the Natural Supermarket Channel by Category and Segment, 2010 vs. 2011 (percent)

Specialty/Gourmet Supermarket Sales Up 10%

Table 9-3: Retail Dollar Sales of Pet Products in the Specialty/Gourmet Supermarket Channel by Category and Segment, 2010 vs. 2011 (in millions of dollars)

Table 9-4: Share of Retail Dollar Sales of Pet Products in the Specialty/Gourmet Supermarket Channel by Category and Segment, 2010 vs. 2011 (percent)

The Safety Bump

Pet Promise’s Market Exit Shakes Things Up

Illustration 9-1: Screen Shot: Taste of the Wild Website Home Page

Whole Foods and Trader Joe’s Increasing Pet-Owning Shopper Base

Table 9-5: Pet Owner Shopping Patterns: Trader Joe’s vs. Whole Foods, 2007-2011 (percent, number, and index for U.S. pet-owning households)

Table 9-6: Dog or Cat Owners Shopping at Trader Joe’s or Whole Foods, 2006-2011 (percent and number of U.S. dog- or cat-owning households)

Shopper Demographics: Whole Foods and Trader Joe’s

Table 9-7: Demographics for Dog or Cat Owners Who Shop at Whole Foods or Trader Joe’s, Summer 2011 (number, percent, and index)

Natural Supermarket Pet Department Dynamics

Illustration 9-2: Pet Department in Whole Foods

Illustration 9-3: Freezer Case of Frenchie’s Kitchen and Country Pet CANZ Raw Pet Food in Whole Foods

Illustration 9-4: Pegboard Display of Planet Dog’s Orbee Tuff Toys in Whole Foods

Illustration 9-5: Trader Joe’s Pet Product Display

Illustration 9-6: Trader Joe’s Tuna for Cats

Room to Grow

Figure 9-1: Level of Agreement with Statement: “National/organic brand pet products are often better than standard national brand products,” 2011 (percent)

Table 9-8: Whole Foods Financial Highlights, 2006-2010

Chapter 10: Dollar Store Focus

Industry Overview

Wooing Walmart Customers…

…And Attracting More Affluent Consumers

The Big Four Dollar Store Chains

Dollar General

Family Dollar

Dollar Tree

99¢ Only Stores

Table 10-1: Top Four Dollar Store Chains: Sales, No. of Stores, Store Size, Target Market

Pet Department Trends

Figure 10-1: Product Types Purchased in Dollar Store Channel in Last 3 Months: Pet Food, Pet Medications, Other Supplies, 2011 (percent)

Figure 10-2: Amount Spent on Pet Products in Dollar Store Channel in Last 30 Days, 2011 (percent)

Illustration 10-1: Family Dollar Pet Products Online: “Pets Are Family Too.”

Illustration 10-2: Family Dollar Pet Products Online—Brand Listings by Category

A Trip to Dollar General

Illustration 10-3: The Pet Aisle in Dollar General

Illustration 10-4: Purina Beggin’ Strips and Dollar General’s EverPet Wave Bacon

Illustration 10-5: Dollar General’s EverPet Cat Accessories

Chapter 11: Other Channels

Figure 11-1: Product Types Purchased in Agricultural/Feed-Seed/Farm Stores in Last 3 Months: Pet Food, Pet Medications, Other Supplies, 2011 (percent)

Figure 11-2: Amount Spent on Pet Products in Agricultural/Feed-Seed/Farm Stores in Last 30 Days, 2011 (percent)

Tractor Supply Co. Harvesting Pet Department

Cargill Taps Into Feed/Seed Channel with Loyall

Illustration 11-1: Cargill’s Online Nutrena Promotion for Loyall Pet Food

Illustration 11-2: Pet Department Banner in Lowe’s: “You New Home for Pet Supplies”

Illustration 11-3: Indoor Pet Department in Lowe’s

Illustration 11-4: Animal & Pet Care Section on Lowe’s Website

Illustration 11-5: Warehouse-Style Display of Pet Products in Bed Bath & Beyond

Illustration 11-6: Pet Product Selection on Bed Bath & Beyond’s Website

Closeout Stores: Tuesday Morning and T.J. Maxx

Tuesday Morning

Illustration 11-7: Pet Department in Tuesday Morning

T.J. Maxx

Illustration 11-8: Pet Department in T.J. Maxx